3rd Platform technologies fuelling software market growth Down Under

Overall, the Australian software market grew by 5.6 per cent year on year (YoY) in 2014, slightly above the growth 5.3 per cent IDC forecast in the first half of 2014 (1H14).

Findings claim that the market is set to grow by a five year compound annual growth rate (CAGR) of 5.8 per cent to reach $A10,902 million in 2019.

Of note to the New Zealand industry, searching for market trends across the Tasman, the growth engine of the Australian software market was the Enterprise Resource Planning (ERP) software market, which grew by 11.3 per cent YoY in 2014, realising the highest growth rate across all markets in 2014.

This represents a huge gain and a major driver for the overall Australian software market, seeing that the ERP market is the third largest segment of the overall software market.

“We've seen a change in IT end-user profile in particular in the analytics space.

“As line-of-business managers are becoming more and more tech savvy, they expect solutions to be not only technically advanced but also easy to use, easy on the eye, and more affordable.”

Also fuelled by Third Platform technologies, the System Infrastructure Software (SIS) market continued to expand, mainly driven by Storage and Security solutions in 2014, which grew 10 per cent YoY and 9 per cent YoY respectively.

This market also has the highest 5-year CAGR of 8.1 per cent, reaching $A3,374 million in 2019. The Security software market is set to grow at a 5-year CAGR of 9.1 per cent YoY to reach $A1,067 million and become the largest SIS-submarket in 2019.

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